The Explosive Demolition of a Rock Formation by Mountain Blasters

question 12

Multiple Choice

The explosive demolition of a rock formation by Mountain Blasters Inc. injures Noh, who is hiking on a nearby slope. Under the doctrine of strict liability, Mountain Blasters must pay for Noh's injury

• A)only if the company failed to use reasonable care.
• B)only if the company was greater than 50 percent at fault.
• C)only if the company was entirely at fault.
• D)without regard to the fault of the company.

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Definitions:

Deficit

A debit balance in the retained earnings account.

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Treasury Stock

Shares that were once issued and outstanding but were subsequently repurchased by the company, reducing the number of shares on the market.

Organizational Expenses

Costs related to the formation and operation of a business entity, such as legal fees, accounting services, and incorporation fees.